Reasons to file a FAFSA - Other than Federal Aid
Some students and or parents realize they aren’t going to qualify for federal need-based aid. Maybe the family income is too high, or the house is paid off and worth too much. Whatever the economic reason, not every student is going to qualify for federal grants or subsidized loans.
But even if you’re absolutely sure that you can’t get federal help, its still worthwhile to take an hour to file a Free Application for Federal Student Aid (FAFSA).
When you complete the FAFSA, you get a Student Aid Report (SAR). Some schools want a SAR as part of the application process, and some will use it to consider students for institutional financial aid that could be more generous than the federal programs. At more expensive schools, even middle class students aren’t expected to pay for tuition.
Finally, a lot of scholarships will ask for a copy of your tax returns, FAFSA, or SAR. Even if the scholarship isn’t need-based, they may be looking for proof of employment or legal status.
This year, the FAFSA is faster than ever with instant PIN generation and sped-up SAR processing times. The entire application takes less than an hour and you can have the results in a day or two. It costs nothing, and its only secured government servers. Why wait? There’s no good excuse!
More to Ivy League Admission Than Money, Grades
It is important to get good grades and high standardized tests scores if you hope to attend an ivy-league school, but there are additional factors for admission consideration that you should be aware of and work on. Money isn’t necessarily a major factor either, considering all the financial aid reform and trust funds paying for tuition to middle and low income kids.
If you want your straight A grade point average and top 5% SAT scores to even get recognized, you’ll need to have some additional activities and experience on your resume. Science club? Latin club? Math team? Student government? Sports? Newspaper or yearbook? Yeah, you’ll need a few of those. Ideally, you should have some experience in one of the leadership positions like a club treasurer or president.
Also, top schools are going to want students who give back to their community. Spend some time helping out around town with various charitable and public service organizations. Local soup kitchens, habitat for humanity, or a neighborhood religious or civic center is likely to have great need for volunteer services. You’ll help your admissions, and you’ll help someone in need.
Remember: They don’t want this stuff just so you can say you did it. They will expect you to learn something and have grown as a person as a result of these experiences. It can be tiring, but try to reflect and expand your perspectives relative to the experience you’re building. You won’t regret it.
Space, Sea, and Military Kids: Upcoming Scholarship Deadlines
In case you’re the type who only applies to scholarships at the last minute, I’ve got quite a list of lists for you to work with over the next few days.
If you’re quick, you can apply for some of the awards listed at the Oregon NASA Space Grant consortium: science and aeronautical scholarships, grants, and internships with deadline dates between now and the end of February. Some of the awards are for Oregon students only, but some are nation-wide as well.
Speaking of education in space sciences, check out the USRA scholarship. This award is for undergraduates but its very competitive and prestigious, so make sure those applications are in order.
Students interested in marine sciences, scuba diving, and nautical studies should check out Seascape’s Marine Scholarships. The fund has provided more than half a million dollars to advancing education in these fields, and until Feb. 1, 2008 they will be accepting applications for scholarships and financial aid.
On Feb. 20, 2008, scholarship applications for military children will be due. If you are eligible or know someone else who is, be sure to sign up or let them know!
Of course, various scholarship and financial aid programs have deadlines throughout the year. If you aren’t able to finish applications in the next few days or weeks, don’t panic! More deadlines will be coming up later, and if you get some letters of reference organized and prepare application essays, you’ll be able to apply to several quite efficiently.
Student Loan Scandal and the Rise of Tuition
The student loan industry rakes in $85 billion a year, and a significant sum of that is in government subsidy and tax considerations. Proponents argue that student loans increase the number of students who can attend school, but critics worry that excess profits raise tuition and leave graduates with heavy student loan debts.
I’m pretty convinced that the effect of federally backed and regulated student loans over the decades has managed to get more students into college, while at the same time creating an unsustainable cost of tuition that threatens to keep students from attending in high numbers in the future. The resources are available for undergraduates, but there is little assistance for the graduate students and Ph.D. candidates who would be needed to keep up with that ever-growing undergraduate population.
I’ve done some political analysis for the student loan industry so I’ve been following the most recent legislation that will slash lender subsidies and put limits on how schools are allowed to market for loan companies. I don’t think many lenders or universities will be subject to criminal or civil liability, so long as they quickly come to compliance with the new laws. These laws would require colleges to have at least three lenders on any preferred loan list and it will cap interest rates on subsidized loans, but conflicts of interest between schools and banks will still exist. If anything, the law just adds government interests into this cozy, corrupt arrangement.
The real effect of the Student Loan Sunshine Act is the limit on subsidized loans: with student loan interest rates falling to 3.4% in a general economic climate of inflation, there is no incentive for banks to pursue sales without government subsidy. With subsidies slashed in the same bill, no profitability will exist in the subsidized loan business and the government will be forced to take on more direct loans. The banks will focus even more on selling private loans with uncapped interest rates, more lenders will find their way into the schools’ preferred lender lists, and more students will likely be subject to high pressure sales, commercials, and other advertising for expensive loans. Student loan companies will diversify to focus on student credit cards, cash advances, and other loan vehicles that carry traditionally higher interest rates.
Even as I was looking for good resources that expanded on this topic, I had a hard time finding recent links that weren’t blatant advertisements designed to drive sales to private student loans! I see Google has even chosen to install some on this site since I’m writing about it.
Official interest rates are down, but there’s still a “credit crunch” in effect so the rates on loans are holding steady or even rising. Students are riskier than most mortgages, because not everyone will get through school and not everyone will find a job that pays for maxed out loans or a premium education that isn’t aided by scholarships and grants. A lot of students see a huge credit limit and suddenly think they can afford $50,000 a year without taking a job or securing additional financial aid - this is a bad plan because it typically ends up with bankruptcy!
Demand for a college education is constantly rising - and the cost of a college education is going up even faster than that.
Yale Planning Financial Aid Changes
Free Tuition for Students of Families Earning Less than $60,000/yr
This week, Yale announced a new plan for drastically expanding financial aid and research funding. Tuition assistance is being increased significantly across all income levels, with many students now qualifying for free college. The details of this plan come shortly after a similar announcement by Harvard - and the public reaction remains mixed.
Senator Charles Grassley cheered Yale’s decision, but he also took the opportunity to criticize other schools with billion dollar endowments and challenged them to follow the lead of these two top-ranking ivy league universities. There has been a lot of public pressure on wealthy schools lately. While tuition is rising even faster than our record-paced inflation, rich universities benefit greatly from charitable income and a non-profit status. Congress has an eye on the finances of higher education and its recently deflated the value of the loan industry. Some particularly expensive colleges are probably starting to fear that their trust funds and endowments could be next on the legislature’s agenda.
But even a generous decision can have negative unintended consequences. Many fear that such moves will deepen the divide between top-tier, elite colleges and the rest of the schools. Obviously, not every university has a billion dollas lying around like Harvard or Yale.
At most schools, tuition will continue to rise and classes will probably get more crowded. Financial status may no longer be an issue, but ivy-league colleges still only have room for students who are hardworking, brilliant, and lucky. If you’re applying for one of these schools, I recommend sending out a few back-up applications - especially now that cost isn’t a concern, debt won’t stop people from applying like it stopped me.
Student Credit Cards and Loans
Ideally, everyone could get an education for free. In the real world, unfortunately, there’s simply a limited supply of professors and schools and a virtually unlimited demand for knowledge. Scholarships and grants can be a very helpful source of tuition funds, but sometimes (too many times) it just isn’t enough. Although I think they should be used as a last resort, there are some positive features of student credit cards and student loans:
Credit Cards
Advantages
- Helps students establish credit history which will be useful when looking for a mortgage or car after graduation
- Can be used to pay for unexpected and unbudgeted expenses
- Can be used to purchase books and supplies online (often at great deals)
Disadvantages
- Interest rates are usually high in the long term, even if introductory rates are low
- Some cards have monthly fees and other hidden charges
- High credit limits can make it easy to get in big debt trouble
Student Loans
Advantages
- Low, fixed interest rate (today’s market rates are low, make sure you get a fixed loan!)
- Ability to borrow a large amount
- Possibility to get federally subsidized loans with deffered interest rates below inflation
Disadvantages
- Ability to borrow a lot means it will take a long time to pay off, and may encourage choices that are expensive
- Deferrals and consolidation can be confusing, so students have to stay aware of their accounts and the choices available to them
There is more information about why banks are interested in student borrowers and how some debt can be helpful in making it through school. Personally, I chose a cheaper school because even small scholarships would allow me to get a degree without taking out any loans. I did make good use of my two credit cards, but I never let my monthly payments fall too far behind either.
Music Scholarships in India
A R Rehman is building a world class music conservatory in India. The college will provide both classical instrumental and orchestra training, as well as high tech electronic and synthetic capabilities. Some scholarships will be available.
The idea is that although electronic music and digital recording is the future of the music industry, students should also learn to play an instrument. Let me tell you, this is a great plan. I played bass guitar for many years and one of the only things that stopped me and my band from publishing our own album was a lack of access to digital recording training. The software may seem straight-forward in concept (plug it in and record) there are so many options and variables that have to be considered that I had never even heard of.
Once you manage to get a track recorded and sounded good, there is the huge problem of synching it to other tracks and turning the recording into a full song with multiple parts.
The courses will focus on Pro Tools and Apple’s Logic Pro: Software that is considered at the top of the game here in America. Knowing this software and being able to play an instrument will allow students to have great careers in music, both as performers and producers. The opportunity for independent publishing also exists, since computers in general have reduced the cost of the necessary hardware. The internet is offering new models for music sales as well, with some bands finding limited success with “Pay what you want” downloads.
Scholarships for College in China
China is growing into one of the world’s largest economies and most important global powers. They are moving forward with their space program and they are hosting the Olympics this year. Part of China’s approach to its rising international importance is to contribute to the education of its citizens as well as international students who wish to travel abroad and study in China. In working toward the goal of expanding education and cultural communication, winners were announced today for recognition and publishing in coordination with academic studies relating to the Beijing Olympics. Papers were accepted and reviewed from over 20 countries, so congratulations to the winners!
For American students who have some familiarity with the Chinese language, the University of Pittsburgh is offering scholarships for study in China. Amounts are variable and depend on the student’s financial need, the cost of the program, and the total amount that the scholarship fund has available. This is a great opportunity for American students who want to learn more about the language, culture, and educational systems in China! Don’t forget, studying abroad can help improve your chances of getting into a good graduate school or a promising career.
The reasons to study in China and the benefits of such a program are overwhelming. Even as we speak, China is setting up its influence in Russia with television stations promoting cultural exchange, scholarships to promote the travel of students, and increased economic co-operation.
Please let us know if you have information about more programs for students who want to study in China. I would love to add a link to any more resources that are out there.
Free College Grants for Community Activism
Do Something for the Community. Get Free College.
Community service really helps the world go around. Neighbors helping each other through tough times and working together for common public goals are a cornerstone of civilized society, because not every benefit can be monetized and commercialized. Somethings just have to get done because they need to get done and someone cares enough to do it.
Of course, colleges are looking for people with this kind of community commitment. They know that active volunteers make good students and reflect highly on the institution they graduate from.
At the David A. Clark School of Law, a commitment to public advocacy in pursuit of justice can land you a free full scholarship in a field that often results in huge student debts. Do you want to study law to help people rather than make big money in hopes that you may someday pay off your tuition? Are you afraid that student loan bills will hurt your ability to defend low income clients? This is the program you’re looking for!
If you just have an idea for a cool community project, but you don’t have any funds to get it started, check out the Do Something grants. This group is offering small grants to get activists working for change. If you have an existing organization, they are awarding funds to help the group grow.
Grants Funding Science Forward
Anyone who studies science knows that finding the next breakthrough is expensive and no matter how hard you try or how well funded your project is, and there’s always the chance that the research won’t produce any results that can be immediately used. Today’s project may just be laying the foundation for the next generation of studies.
This is why science grants are so important to advancing modern technology. Private businesses aren’t always willing to take such large risks, so private charity and public government funding often provide a major boost to cutting edge science.
Last week, the governor of New York announced a major $2 million grant for Cornell University to study stem cells. The current ban on funding for stem cell research is limited to federal funds, so this state program is a great chance to get around that and make sure that the science is moving forward anyway. The money will be used at Cornell to increase facilities and resources available to studies and faculty, and some other colleges in the stem cell network will benefit from increased sharing of knowledge and results.
Of course, not all grants are just for the colleges themselves. Many grants are available to individual students attending certain schools or studying certain subjects & specialties. Interested students should visit GrantsNet to find out more about these funding opportunities.
Philanthropy Raises Wealth Questions
Philanthropy at the Foreign Policy Blogs has posted a list of the top ten private charitable donations of 2007.
Education is heavily represented in most charitable donations, and the results of last years’ totals are amazing. Just ten people account for more than four billion dollars of gifts and grants, and by most standards it is being considered a good year for charity fundraising. I imagine a lot of this money will find its way into scholarship trusts, alumnae funds, and university building & research projects.
One of the issues raised by such extravagant donations is the wealth of the individuals who can afford to give so much. If they can hand it out with no problems, then they obviously have more than they could ever personally need. Is it too much, or does the pursuit of wealth trickle down and create opportunities for those who aren’t necessarily rich, too?
Then again, how rich is rich? Even minimum wage in America puts one at the top 10% of global income, and a job requiring a college-degree puts someone near the top 3-5% in the world. If that isn’t a good reason to go to college, I don’t know what is!
What’s even better is, some people with plenty of money might be willing to pay for it…not just in the taxes they provide, but also in voluntary contribution.
Immigrant Scholarships Controversy for Huckabee
When Mike Huckabee was governor of Arkansas, he supported merit-based scholarships for immigrant students, regardless of whether or not they could prove legal residency. For some Republican voters, this has worked against Huckabee, but some others don’t think its a very big deal and support Huckabee regardless. This seems to be one of the big issues in the exchange between Huckabee and Fred Thompson, and its starting to show visible differences between federalist conservatives and compassionate conservatives.
Some of Fred Thompson’s supporters sites go even further, questioning the entire Huckabee record on education. Fred Thompson doesn’t have a record of running a state education program, so criticisms from his campaign should be taken with a grain of salt.
This scandal shows something that international students should know about American scholarships: Not every program requires proof of legal residency. I’m not advocating any illegal activities, but I know that sometimes renewing Green Cards and Visas can take a long time and if papers get lost at the government offices, a student can be without legal status for a brief period of time. Some scholarship programs will allow this, too. Of course, the best way to get the most financial aid is to register legally and keep all paperwork up to date. But, if the worst-case scenario comes around, there might be some programs that can help.
Scholarships in India and Abroad
For students in Indonesia and East Timor, the government of India is offering twenty new scholarships. These scholarships can be used in a variety of fields and they can be extended for all levels of study, right up to post-doctoral. This is another great opportunity for students to see new places, study new cultures, and learn new languages. Best of all, someone else can pay for it!
On the other hand, if you are a student from India, there are also many opportunities to find scholarships for you to see and study in another country. GyanIn has a great summary of why American and European schools are willing to pay money to bring in Indian students. I would like to add to what is there, the public universities in America are extremely cheap compared to the private ones, and even if they don’t offer full tuition benefits, they may be cheaper when you consider fees, food, and housing.
The University of North Florida had a very active International Students department, and students from more than a hundred countries attended classes with us. When many perspectives come together in the pursuit of learning the truth, the results are much better than a single point of view. As a bonus, this means there is money available to bring in new ways of looking at the world!
If you’re interested in studying internationally, it pays to spend some time looking for scholarships and tuition assistance. Schools all over the world are competing to get the best students in their classes, and the more diverse the population, the better. Learning another language and culture will prepare you for increased earnings and better opportunities for promotion in your career. Its also exciting, and it could be the adventure of your life!
Scholarships, Grants, & More Financial Aid
There are many types of financial aid available in helping you pay for college. They share one basic thing: money to help students fund school. However, there are some subtle differences that can be potentially confusing.
Scholarships: Usually have few requirements other than the student stay enrolled, get good grades, and stay out of trouble. Eligibility could be determined by almost any number of factors, so this is usually the most open-ended financial aid.
Contests: Are centered around some sort of research, competition, or presentation. Some athletic contests include financial aid, and some science fair contests can result in cash prizes, too. If you search online, it will be easy to find writing contests, blogging contests, and contests related to almost any hobby or skill you can think of.
Grants: Are sums of money donated to further a particular cause. With state grants, the cause is to get more students in the state going to school, or getting more students studying the majors and careers that are highest in demand. Federal grants are designed to help students with a lot of financial need, and private grants are usually offered to advance the objectives of a private professional organization or specific subject of academic study.
Fellowships: Pay students to represent a group or an idea. Many fellows will be required to dedicate some time and effort to helping the public relations and academic contributions of the group providing the funding. Fellowships are extremely prestigious and can help fund your education and even help you find a good job afterward.
Loans: Have to be paid back! They aren’t really financial aid at all (unless they are subsidized) but they can sometimes be necessary to make ends meet.
Scholarships for Pakistani Students
A lot of people on the internet in Pakistan have been asking about and looking for scholarships. Right now, the government in Pakistan has set a 5 year goal of doubling college enrollment, and the budget sets aside more money than ever to help pay for this. Interested students can read more about this at the Pakistan Higher Education Commission.
The improvements will increase the number of physical schools and classrooms, but it will also increase the state’s capacity to offer distance and on-line learning.
But even with more schools opening and more on-line options available, many students will want to travel abroad. Going to college in another country has always been a great advantage in education. It gives students a chance to practice a new language, study a different culture, and get an international perspective on the world. The British Council has an entire section devoted to scholarships for Pakistani students and there are many free scholarship searches that can find scholarships at American schools for international students.
If you’re looking for an internship to help you turn your telecommunications training and skills into a career, check out this website.
Searching Scholarships: Complete Online Guide
Whew! FAFSA, SAR, .EDU, .GOV!
Even if you can even keep track of the acronyms, its a ton of work and a complicated procedure. There is a free web-guide online now at Search Scholarships Online - Prepare for College.
The guide covers everything from saving for school in tax-free accounts to choosing a school or deciding how to approach student credit. There are a ton of great links to Expert Articles from ScholarshipExperts.com, and a great layout. Maybe I should go back to school so I can learn how to design a website to look that good! (If anyone out there has any good WordPress themes please let me know!)
If the finances are taken care of, you can focus on the most important part of going to school: enjoying an intellectually challenging environment while studying the subjects and topics that energize you. Amid all the stress, it can be hard to remember that school is a chance to be out on your own and living new life experiences.
We’re always looking for new ways to pay for college, so if you have any ideas or you know a good link to more financial aid resources, we’d love to hear from you! If you have a blog about college financing, feel welcome to leave a trackback or comments with an appropriate URL. Unfortunately, a lot of the comments are from spammers selling things that have no relevance to our mission here. Please try to keep links on topic, thanks!
Scholarship and Grant Information Should be Free
Some companies out there are charging students for the promise of scholarships or grants. Be wary of any site that promises “guaranteed” results or exclusive information that can’t be found anywhere else. Chances are, that information is available for free in several places on the internet and its very unlikely that scholarship or grant providers would want to keep that knowledge hidden from students.
Now, many free sites are supported by advertisements. This isn’t necessarily a bad thing, but it can get out of control if these ads are misleading, pop-ups, or contain harmful code. On the other hand, it might be helpful to see what schools, loans, or book stores are offering good deals. If its something you’re interested in, there’s no obligation to click and find out a little more about it.
I mentioned earlier in my FAFSA article that some companies are also charging to file this application: Again, there is no reason to pay anyone! Even if you hire someone to hand in the actual application, you will still need to do all the research and work of preparing it. They don’t know your financial information and they don’t know your family’s investment information unless you tell them - and you could just go straight to the Department of Education’s website and type it in there the first time.
Financial aid is supposed to be about finding money for school - don’t spend money chasing that promise, because its all available for free (of course, there’s still effort involved!)
Scholarships Help in Small Amounts
Sometimes people get carried away chasing after $10,000+ scholarships that require tons of effort in a national competition against tens of thousands of other applicants. At Breaking the Plate, there’s a good article on how to approach financial aid in a practical way. $100 here and $500 there doesn’t sound like a lot, but it definitely adds up.
Beyond the standard steps like filing a FAFSA, the author is taking a local approach to college scholarships. Guidance counselors and local businesses (check the local chamber of commerce for a collection!) can help you a lot, because local scholarships have the least publicity and the least competition. There’s just one extra thing: you might be eligible for local scholarships in the town you’re going to school in.
A national or international online scholarship database can be helpful in finding such scholarships. Once you fill out an individual eligibility form you can see what scholarships you individually qualify to apply for. If your moving for school, you can try using your old location and then changing your profile to the new city to see if you are eligible for awards in either place.
Obviously, there are only so many awards you can apply for and you’ll have to make a decision at some point between one or more possible applications. Try to figure out which scholarship is the best match for you and focus on the ones with smaller eligibility and less marketing. The $10,000 awards are tempting, but it won’t help if you come in 2nd place.
College Tuition: Too Expensive, or Too Confusing?
An interesting question is posed at students.maxblog.eu: Is college really too expensive, or is it that people are not aware of all of their financing options?
I think the answer is “Both!”
I work with financial aid, so most every day I am helping students find new ways to get scholarships (Not just on this blog, but I hope that helps too!) The entire process is overwhelming and many new students have no idea how to get started or what they should consider. John (the other one) makes a good point that the school with the lowest sticker price may not even be the best deal. If the “more expensive” school offers more financial aid, it may end up being cheaper in the long run.
Unfortunately, tuition rates are going up faster than inflation and regardless of financial aid, paying for school is getting more difficult every year.
Even if the student does everything expected of him/her, the Roosevelt Institution adds another perspective on the FAFSA: Its just plain broken. While applauding the recent legislative changes that will increase federal financial aid, Zach points out that the process is tedious and families are often left wondering what assistance they are eligible for until the last minute.
At PheistyBlog, the author offers another completely different idea: Skip school altogether! This won’t work for everyone, obviously, but the author does make a point to demonstrate careers that are in high demand but don’t necessarily require a degree. If you already have a few years of work experience in the field you’re interested in and there’s a certificate program or quick training class, why not skip extra years of general education and focus on your skill or trade? The important thing is to find out what’s right for you, and not assume there is a “best path.”
But if you do decide to pursue college, make sure you’re ready to put significant effort into finding sources of funding.
Reducing Student Loan Debt Bit by Bit
The Finance Web Log has a great summary of some things you can do to reduce the amount of money you need to borrow in student loans. Even if you aren’t able to pay for all of your education up front, its a good idea to get financial assistance for every bit you can. It’s obviously difficult to come up with such large amounts of money while you’re busy trying to get good grades and learn new things, but there are several opportunities available for college students to pursue.
It can be stressful worrying about money when you’ve got so much going on already, but whatever you don’t manage to pay for or offset up front will come back down the years with a heavy interest payment, too. No opportunity is too small, so long as you prioritize your time and aim for programs you have a strong chance of winning.
I strongly suggest searching for scholarships that match your individual eligibility, but you can’t stop there and consider it a complete strategy. Its important for students to look at the FAFSA, work-study, institutional aid, part-time (or even full-time) jobs, and various contests. The more ways you attempt to generate cash for tuition, the better your chances of receiving some. College prices are going up rapidly and more students than ever are continuing education beyond high school.
Its never to early to start paying for college, so what are you waiting for? Start a blog, write some scholarship essays, or think up a project you’d like to pursue with a grant!